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Identified Risk 5: � Best value bid philosophy With the best value proposal process it may be unclear what each contractor is including. Our proposal includes only what the drawings show, which may Solution / Strategy: not be what the owner needs or intends. We have indicated items on our "Value Add Plan" that we feel need to be accepted to provide a complete proposal based on our interpretation of the intent of the drawinqs. Identified Risk 6: Protecting the existing areas outside of our construction limits and documentina existina conditions. Our project manager and superintendent will walk the construction limits with the owner, engineer, and our subcontractors to document with photos and Solution / Strategy: create a written log of existing conditions prior to the start of construction. At the same time we will work together to develop and implement a plan to protect the existina conditions. Identified Risk 7: � Extent of 6' construction site fencing is not clearly defined. We have included in our bid what we think is an appropriate amount of 6' construction fence to protect the public from areas where we have deep excavations and building structures. The details of what we have planned Solution / Strategy: for will be reviewed and coordinated with the Owner in the Clarification Phase. Please see our Value Add Plan If the Owner desires that the entire construction zone as defined on the drawings is to have the 6' construction fence installed. We have included tax in our bid which may make us less cost competitive. It is unclear as to what extent that this project is tax exempt or not. The Identified Risk 8: specifications state that the project is NOT tax exempt. However, Addendum #3 states that the City may have some measure of tax exempt status. We are working with our legal counsel regarding tax implications for this project. However, we do not have enough time to resolve this issue prior to Solution / Strate submitting this bid proposal. As such, we have included tax in our base bid gy' base but have also compiled tax breakout pricing from all subs and vendors. See our Value Add Plan in the event this is project is determined to be tax exempt. Identified Risk 1: � Community issues/ Public perception On all our projects, Knutson issues monthly new letters which in this case Solution / Strategy: could also be used to update the community on construction progress. We will also be available to conduct project walk-throughs and/or tours as the City desires. Identified Risk 2: Budget Solution / Strategy: See Knutson Identified Risk #3. Our "VE" process will be used to identify and resolve budget concerns. Identified Risk 3: Safety Solution / Strategy: We conduct pre-construction meetings with our subs and vendors in which